Along with CATL and Panasonic, LG Chem has been supplying battery cells for Tesla, as well as other car brands like Volkswagen. As reported by Reuters, LG Chem expects the demand for their batteries to grow by 10% in the second half. Their boost in sales already was a result of receiving attention in Europe, mainly from their factory in Poland.
The company has explained that their lithium-iron-phosphate (LFP) batteries are better than what CATL is providing. This is because LG Chem’s LFP batteries have lower energy density, making them more ideal for longer distances. The Tesla Model 3 vehicles from Giga Shanghai will be fitted with these.
LG Chem also made a statement about their forecast:
“Sales are expected to grow and profitability is expected to remain robust thanks to greater EV shipments for European automakers and increased sales for cylindrical EV batteries.”
Musk has already made it clear he would love to continue working with the current Tesla. Another Tesla battery supplier Panasonic already has plans to launch cobalt-free cells in the next five years, which will increase energy density by 20%.
If LG Chem wants things to really take off, they have to work towards developing an even more affordable yet sustainable product. The competition for resources and cost in the electric vehicle (EV) industry is fiercer than ever.
